W&T Offshore Converts Credit Facility to Enhance Liquidity
News related to:W&T Offshore, Inc · 2 min read
HOUSTON, Oct. 07, 2026 /CourierPR/ -- W&T Offshore, Inc., an independent oil and natural gas producer, has completed a significant restructuring of its credit facilities, enhancing its financial flexibility and operational capabilities. On October 1, 2026, the company entered into a Second Amendment to its Credit Agreement with Texas Capital Bank, as administrative agent, and its bank group, converting its existing $50.0 million revolving credit facility into a conventional reserve-based lending (RBL) facility.
The new RBL structure features an initial borrowing base of $50.0 million, fully supporting $50.0 million of elected commitments, with the potential to increase commitments to support future growth, subject to borrowing base availability and lender consent. The aggregate maximum credit amount is set at $100.0 million, providing the company with additional borrowing capacity as it expands its reserve base.
Notably, the amendment removes several restrictive features that previously constrained the company's liquidity management. The 75% excess cash flow sweep, the requirement to repay any outstanding revolving credit facility balance every three months (clean-down), and the $100.0 million minimum PDP PV-10 asset coverage covenant have all been eliminated. These changes give W&T Offshore greater control over its cash flow and liquidity.
The company has also increased its shareholder return capacity. The annual restricted payments basket has been increased by 50%, from $10.0 million to $15.0 million. This adjustment allows the company to return more capital to shareholders while maintaining its financial covenants.
The pricing and covenants of the credit agreement remain unchanged. The company continues to maintain a maximum net leverage ratio of 2.50x and a minimum current ratio of 1.00x. Additionally, the lenders did not charge any amendment fees in connection with the transaction, other than the reimbursement of customary fees and expenses of the administrative agent.
CIBC, a past lender to W&T Offshore, has rejoined the bank group with a $10.0 million commitment, replacing an exiting lender. Each of the company’s continuing lenders has maintained their full commitment. The bank group's support remains strong, with Texas Capital Bank leading the effort.
Tracy W. Krohn, Chairman of the Board and Chief Executive Officer of W&T Offshore, commented on the significance of this amendment.
As of June 30, 2026, W&T Offshore had total liquidity of approximately $234 million. This solid base will help the company execute its goals for 2026 and 2027. The company has working interests in 48 fields in federal and state waters, with 41 fields in federal waters and seven in state waters. It has under lease approximately 591,000 gross acres (457,000 net acres) spanning across the outer continental shelf off the coasts of Louisiana, Texas, Mississippi, and Alabama. The company's operations include approximately 450,000 gross acres on the conventional shelf, 136,000 gross acres in the deepwater, and 5,000 gross acres in Alabama state waters.